The United States has imposed a 12.5% tariff on most Nigerian exports following a Section 301 investigation that concluded Nigeria has not adopted or effectively enforced a ban on goods produced with forced labour.
The measure, announced by the Office of the United States Trade Representative (USTR), forms part of a wider trade action affecting 60 economies. It places Nigeria in a higher tariff category than countries that have committed to prohibiting forced-labour imports.
Two-Tier System and Investigation Findings
The USTR probe, launched in March 2026, examined whether major US trading partners had failed to ban goods linked to forced labour, which the agency said created an unfair burden on American commerce. The investigation involved more than 1,600 written submissions, testimony from over 100 witnesses, and consultations with more than 45 governments.
Under the new framework, countries that have enacted or pledged to enact bans on forced-labour imports face a 10% tariff. Nations without such measures, including Nigeria, attract the higher 12.5% rate. Countries in the lower tier include India, Indonesia, Malaysia, Mexico, Pakistan, Canada, Bangladesh, Cambodia, Argentina and the United Kingdom.
Exemptions and Legal Foundation
A Federal Register notice confirmed the 12.5% rate for Nigerian products, with exemptions for certain raw materials that could create supply shortages in the US, goods unavailable in sufficient quantities from domestic or alternative sources, and products whose tariffs could broadly disrupt the American economy.
The action follows President Donald Trump invoking Section 122 of the Trade Act of 1974 after the US Supreme Court blocked an earlier tariff programme introduced under different legislation.
Call for Stronger Laws
US Trade Representative Jamieson Greer said the tariffs aim to encourage trading partners to strengthen their legal frameworks against forced labour. “President Trump recognises that decades of moral suasion have not eradicated forced labour from global supply chains. The United States has had a forced labour import ban for nearly a century. It’s well past time for our trading partners to do the same,” Greer stated.
Nigeria has constitutional protections and legislation prohibiting forced and compulsory labour, though international assessments have raised ongoing concerns about enforcement.
Implications for Nigerian Exporters
The higher tariff is expected to raise costs for Nigerian exporters targeting the American market. The full impact will depend largely on which products qualify for exemptions. With Nigeria recording a trade surplus of N7.55 trillion in the first quarter of 2026, any slowdown in US-bound shipments could add pressure on the naira if export earnings decline.
